Chapter 6 Test - Business Management

Front

Profit is the difference between earned income and costs.

Back

True

Front

The number of manufacturing firms far exceeds the number of service firms.

Back

False

Front

The demand for a product refers to the number of similar products that will be offered for sale at a particular time and at a particular price.

Back

False

Front

Commercial businesses engage in producing things.

Back

False

Front

Wholesalers and retailers are classified as industrial types of businesses.

Back

False

Front

Knowing what customers want is critical to achieving effectiveness rather than efficiency.

Back

True

Front

The term “domestic goods” refers to products made by firms in other countries.

Back

False

Front

With mass production, the cost of goods manufactured increases for each product made.

Back

False

Front

The most challenging way to obtain increased efficiency is through reorganization.

Back

True

Front

More managers are usually needed when workers are empowered.

Back

False